ISO Approach CPA Stephen Obock Associate Director, KPMG August 2018

Transcription

1 ISO Approach CPA Stephen Obock Associate Director, KPMG August 2018 Uphold public interest

2 Agenda Introduction Quality Management System Process Approach Q&A

3 Introduction Delivering quality is a necessity in running of a modern assurance/ accountancy practice. Firms MUST develop and implement good processes, practices and procedures that ensure quality There is great need to constantly monitor quality practices and programs to ensure compliance and regular updated as and when required A quality management system is necessary for all assurance providers

4 QMS Definitions A Quality Management System is: System for managing the quality of an organization Includes everything in the organization that relates to quality: Products and services Processes Operations Customer Satisfaction

5 QMS Description As required by ISO 9000: The Quality System should be well documented, implemented, understood, maintained and continually improved Emphasis is placed on problem prevention rather than inspection Quality planning is required The PROCESS APPROACH to management is encouraged

6 VERTCAL MANAGEMENT vs. QUALITY MANAGEMENT SYSTEM

7 Vertical Management Inputs Administration/Management Marketing Research and Development Purchasing Outputs Production

8 Vertical Management Style Focus on end product Customer satisfaction only relevant to complaints Communication on a need to know basis Improvement on an as needed basis Responsibility not established until something goes wrong!

9 ISO 9000 QM System Continuous Improvement of the QMS Customers Management Responsibility Customers Resource Management Measurement, Analysis and Improvement Satisfaction Requirements Input Product Realization Product Output

10 Quality Management Style Focus on the entire system Customer is main concern Communication at all levels Continuous Improvement Responsibility assigned

11 Why Implement a QMS? Ensure Customer Satisfaction Improve Quality System Enhance Control of Resources Improve Suppliers Performance

12 ISO 9000 Principles Customer Focus Leadership Involvement of People Process Approach Systems Approach to Management Continual Improvement Factual Approach to Decision Making Mutually beneficial supplier relationship

13 ISO 9000 Principles (1) Customer Focus Quality Control (QC) - understand and meet basic requirements; little or no knowledge of customer perceptions Quality Management (QM) better understanding of overall requirements; customer satisfaction tracked Total Quality Management (TQM) customer information collected systematically throughout the company; knowledge of customer perception; ability to offer preferred products and services

14 ISO 9000 Principles (2) Leadership QC management provides resources sufficient for quality control QM management establishes policy, objectives and environment to control processes that ensure quality TQM managers provide personal examples that create customer satisfaction; quality is a strategic issue

15 ISO 9000 Principles (3) Involvement of people QC people must create and operate basic process; does not draw on full talents QM processes defined and personnel qualified; employees contribute to improvement TQM employees fully engaged & entirely involved; high level of communication between leaders and employees

16 ISO 9000 Principles (4) Process approach QC inspection and testing are common; controlled processes provide feedback QM movement from control of only process outputs to control of the process itself ; additional processes such as management review, corrective actions, etc. TQM optimizes resources, continually improves, uses process measures

17 ISO 9000 Principles (5) System Approach to management QC inspection and control systems work together but not integrated with the rest of the organization QM moved to integrate the process for creating the product with verification of the final product; focus on customer satisfaction TQM fully understands the interaction among the processes; continually improves

18 ISO 9000 Principles (6) Continual improvement QC focus on improvements to ensure that the customer does not receive defective products QM focus on improving the effectiveness and efficiency of the QMS; mature corrective/preventive loop TQM focus on efficiently meeting customer needs through the QMS; leaders involved in improvement process

19 ISO 9000 Principles (7) Factual Approach to Decision Making QC uses data to distinguish nonconformities; statistical data ensure requirements are met; little use of data to measure trends QM facts and data used to make decisions regarding the QMS; focus on improvement TQM analysis used to improve market position; information gathered from all members of the organization

20 ISO 9000 Principles (8) Mutually Beneficial Supplier Relationship QC some validation of the suppliers product QM processes to define and document, review and evaluate; well developed and defined validation process TQM focus changes with established strategic alliances or partnerships; mutual commitment to customer satisfaction; focus on continual improvement becomes common

21 Process Approach A process is a set of interrelated or interacting activities that use inputs to deliver an intended result The process approach establishes processes to operate as an integrated and complete system based on 3 concepts. 1) The management system integrates processes and measures to meet objectives 2) Processes define interrelated activities and checks, to deliver intended outputs 3) Detailed planning and controls can be defined and documented as needed, depending on the organization s context

22 Risk-based thinking, PDCA and the process approach The three concepts together form an integral part of the ISO 9001:2015 standard. Risk-based thinking is used throughout the process approach to: Decide how risk is addressed in establishing processes to improve process outputs and prevent undesirable results Define the extent of process planning and controls needed (based on risk) Improve the effectiveness of the quality management system Maintain and manage a system that inherently addresses risk and meets objectives

23 Plan, Do, Check and Act PDCA is a tool that can be used to manage processes and systems. PDCA stands for: Plan: establish objectives and build processes necessary to deliver results Do: implement what was planned Check: monitor and measure processes and results against the objectives Act: take actions to improve results PDCA operates as a cycle of continual improvement, with risk-based thinking at each stage.

24 What are the possible benefits? A focus on more important ( high-risk ) processes and their outputs Improved understanding, definition and integration of interdependent processes Systematic management of planning, implementation, checks and improvement of processes and the management system as a whole. Better use of resources and increased accountability More consistent achievement of the policies and objectives, intended results and overall performance Process approach can facilitate the implementation of any management system Enhanced customer satisfaction by meeting customer requirements Enhanced confidence in the organization.

25 Interactive Session Q&A